NT$50,000 exchanged for Japanese Yen, but using the wrong method ended up costing an extra NT$2,000! Smart people exchange like this

1 TWD = 4.85 JPY, up 8.7% this year — If you’re still debating whether it’s “worth it now” to travel to Japan or invest in Japanese yen, this article reveals a harsh truth: With the same 50,000 TWD, choosing the wrong currency exchange method could cost you an extra 1,500-2,000 TWD.

Is it really worth exchanging for yen now?

First, the conclusion: It’s worth it, but with conditions.

On December 10, 2025, the TWD/JPY exchange rate reached 4.85, appreciating 8.7% from 4.46 at the start of the year. That sounds good, but the underlying logic is — the yen is appreciating. For Taiwanese investors, this means the later you exchange, the more expensive the yen becomes. But that doesn’t mean rushing to the bank to exchange cash immediately is the best choice.

The key point: The Bank of Japan is about to raise interest rates. BOJ Governor Ueda Kazuo has recently signaled a hawkish stance, and markets expect a 0.25 bps hike to 0.75% on December 19 (a 30-year high), with Japanese government bond yields reaching a 17-year high of 1.93%. This will further support the yen. The US has entered a rate-cut cycle, narrowing the US-Japan interest rate gap, and arbitrage risks exist; in the short term, the yen may fluctuate 2-5%.

Conclusion: Dollar-cost average, don’t exchange everything at once.

Taiwan’s 4 main ways to exchange for yen: cost differences are huge

Many think exchanging yen is just going to the bank, but just choosing the wrong channel can make you lose the cost of an iPhone. Let’s look at real data.

Option 1: Bank counter cash exchange (most traditional, most costly)

Bring cash TWD to a bank branch or airport counter to buy yen cash. Sounds convenient, but the cost is surprisingly high.

Why so expensive? Because banks use the “cash selling rate,” which is about 1-2% worse than the international spot rate. In other words, banks profit from this spread. For example, Taiwan Bank’s rate on December 10, 2025, is 0.2060 TWD per yen (1 TWD = 4.85 yen), but the real-time market rate might be better.

Some banks also charge a “counter service fee” of 100-200 TWD per transaction. Exchanging 50,000 TWD this way could cost you 1,500-2,000 TWD.

Who is this suitable for? People who don’t want to use online services and need emergency cash (e.g., at the airport).

Option 2: Online currency exchange + in-person pickup (best value)

This is the smart choice. Use bank apps or online banking to convert TWD to yen, no need a foreign currency account, just book a pickup location and time. Taiwan Bank’s “Easy Purchase” online exchange is an example.

Why is it super cost-effective?

• Uses the “spot selling rate,” about 0.5% better than cash selling rate (saving about 500-1,000 TWD)
• No service fee from Taiwan Bank (pay with TaiwanPay, only 10 TWD)
• Can schedule pickup at airport branches (Taoyuan Airport has 14 Taiwan Bank counters, 2 open 24 hours)

Cost comparison: losing 300-800 TWD on 50,000 TWD — over 1,000 TWD cheaper than counter exchange.

The downside: needs 1-3 days in advance to book, and pickup times are limited to banking hours; branch changes are not possible. But for planned travelers, this is the best option.

Who is this suitable for? Travelers with time to plan, especially those who pick up cash directly at the airport.

Option 3: Online currency exchange + foreign currency ATM withdrawal (most flexible)

Use a chip-enabled bank card to withdraw yen at foreign currency ATMs, which operate 24/7. Cross-bank withdrawal fee is only 5 TWD. Some banks like E.SUN support direct withdrawal from TWD accounts, with a daily limit of 150,000 TWD and no exchange fee.

Cost comparison: losing 800-1,200 TWD on 50,000 TWD

Advantages: instant, flexible, suitable for urgent needs. Disadvantages: limited ATM locations (~200 nationwide), high peak demand may deplete cash, fixed denominations (1,000/5,000/10,000 yen), not all foreign currencies supported.

Important: After the 2025 new rules, most banks have adjusted daily withdrawal limits to 100,000-150,000 TWD, with some account types lower. Consider spreading withdrawals or using your own bank card to avoid cross-bank fees.

Who is this suitable for? Office workers needing quick cash without visiting the bank.

Option 4: Online currency exchange + holding a foreign currency account (investment)

Open a foreign currency account, use online banking to convert TWD to yen, and deposit into the account. Best for those wanting to invest in yen rather than just travel.

Advantages: can buy in batches, average costs, better exchange rates. Disadvantages: need to open an account first, withdrawal of cash incurs fees.

Cost comparison: losing 500-1,000 TWD on 50,000 TWD

If you don’t withdraw cash and just hold yen for deposits or investments, costs are lower. Current yen deposit annual interest rate is about 1.5-1.8%, offered by E.SUN and Taiwan Bank.

Who is this suitable for? Readers with forex experience wanting to invest in yen deposits.

HKD vs JPY: Which is more cost-effective?

Some ask: since considering foreign currencies, why not exchange HKD?

Honestly, exchanging yen now is much more cost-effective than HKD.

HKD is pegged to USD, with limited fluctuation. Yen, besides its appreciation potential, is also a major global safe-haven currency. When Taiwan stocks fall and global risks rise, funds tend to flow into yen for hedging. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, effectively offsetting stock declines.

HKD is constrained by the linked exchange rate system, with limited appreciation potential. From an investment perspective, the dual potential of yen (appreciation + hedging) far exceeds HKD.

After exchanging for yen, don’t let your money sit idle

After converting 50,000 TWD to yen, what’s next? Leaving it idle with zero interest is a waste.

Choose one of these 4 options:

1. Yen fixed deposit (most stable): Starting from 10,000 yen, annual interest 1.5-1.8%, available at E.SUN and Taiwan Bank. About 900 yen annual interest on 50,000 yen, modest but stable.

2. Yen savings insurance (mid-term growth): Cathay and Fubon offer yen insurance policies with guaranteed 2-3% interest, suitable for medium-term holding.

3. Yen ETFs (growth-oriented): Yuanta 00675U tracks yen index, can buy fractional shares via broker apps, management fee 0.4%, suitable for dollar-cost averaging. If yen continues to appreciate, ETF prices will rise.

4. Yen forex trading (swing trading): Trade USD/JPY or EUR/JPY directly on forex platforms, with 24-hour trading, both long and short. Small capital can operate, but high risk — only for experienced traders.

My advice: Beginners start with yen deposits, then try ETFs. Avoid jumping into swing trading immediately — high risk of losses.

Common Q&A pitfalls

Q: Why do some say to watch “cash rate” and “spot rate” when exchanging yen?

A: This is the easiest way banks trick you. Cash rate is the rate when you exchange cash, banks profit from this spread, usually 1-2% worse than the interbank spot rate. Spot rate is used in interbank trading, closer to real market price, but settlement takes T+2 days. Simply put, use the spot rate to save money, but if you want quick, use the cash rate — at the cost of losing over 1,000 TWD.

Q: How much yen can 10,000 TWD buy?

A: Using Taiwan Bank’s cash rate of 4.85 on December 10, 2025, 10,000 TWD ≈ 48,500 yen. Using the spot rate (~4.87), about 48,700 yen — a difference of 200 yen (roughly 40 TWD).

Q: What to bring for cash exchange at the counter?

A: ID card + passport. Under 20 needs parent’s consent + declaration. Large amounts (>100,000 TWD) may require source declaration. If booked online, bring transaction notice.

Q: Are foreign currency ATMs limited?

A: Yes. From October 2025, many banks tightened withdrawal limits. CTBC: equivalent of 120,000 TWD/day, Taishin: 150,000 TWD, E.SUN: 150,000 TWD (including card spending). It’s recommended to split withdrawals and avoid withdrawing all at once. During peak times (like airports), cash may run out — plan ahead.

Final advice

Yen is no longer just pocket money for travel; it’s an asset with appreciation potential, hedging, and investment value. For Taiwanese investors, allocating some yen amid TWD depreciation pressure is a relatively wise choice.

Remember these two principles:

1. Dollar-cost average, don’t exchange all at once — avoid single-point risk, and average costs
2. Don’t leave the money idle after exchange — put into deposits, ETFs, or try swing trading to make your money grow

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then move into deposits or ETFs based on needs. Not only will you enjoy more cost-effective trips, but you’ll also have an extra layer of protection during global market fluctuations.

Start planning now — exchange demand has increased by 25% in the second half of the year, and yen cash at airports is becoming tight again.